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July 02, 2018
The Department of Information Communications Technology (DICT) will finalize by the middle of the month which between the two versions of the draft terms of reference (TOR) for the selection of a new major telecom player will be adopted, according to Eliseo Rio, DICT acting secretary.
Last week, DICT issued two versions of the TOR. The first version calls for a hybrid-selection process while the second version is an auction process with P36.58 billion as minimum bid price.
Rio said the schedule of the bidding will also be finalized by mid-July.
DICT came up with a second version as an option. Both versions were approved by an oversight committee.
This Friday, DICT will hold a public discussion with the public and private sectors and get their opinion which of the two versions is suited in selecting a new player.
“These are two versions that will be the subject of a public discussion this Friday. We have invited all stakeholders to help us decide which version will effectively select the best third player that can give the best and least expensive telco services,” Rio said.
Under the first version of the draft TOR, DICT adopted a “hybrid” selection process for the third major telecommunications player, where the government will use a points system based on the document submitted. The parameters include national population coverage, capital and operational expenditures and the minimum average broadband speed during the first five years of operation.
DICT said the population coverage will carry a weight of 40 percent of total grade, the minimum average broadband speed a 20 percent weight, the annual capital and operational expenditure a 40 percent weight, computed annually over a five-year “commitment” period.
For every P2.25 billion capital and operational spending in excess of the minimum P40 billion spending meanwhile, up to a maximum of P130 billion, a participant will receive one point per annum.
“A participant’s annual point score shall be multiplied by the corresponding weightages... reflecting the government’s policy priority of encouraging rapid network roll-out and the difficulty of deploying the new major player’s (NMP) networks and facilities in the shortest possible time,” the DICT said.
Under the second version of the draft TOR, DICT will be using auction as mode of selection for the new major telco player, with the minimum bid price set P37 billion pegged from the spectrum user fees (SUFs) being paid by existing telecommunications companies.
“ While there is a minimum bid amount, in this mode of selection, there will be no cap on the bid amount as the participant who submits the highest bid shall be selected as the new major player” DICT said.
Aside from these qualifications, bidders are required to have a congressional franchise to operate a telco business or has partnered with a business that owns a congressional franchise, covered by a binding bidding agreement “by committed investors seeking to become part of the NMP.
The government will assign to winning bidder several frequency band that will allow them to offer 3G, 4G and 5G ( third, fourth and fifth generation) these includes 700 megahertz, 850 MHz, 2100 MHz, 2010 MHz, 2.5 GHz, 3.3 GHz, 3.5 GHz and 10.5 GHz. |
